In the first part of this series, we looked at how underwriting needs to be able to respond to multi-channel selling and how future offerings should extend beyond traditional insurance into value-added services.

In part two, we are going to take a closer look at how underwriting tools (UW desktops, business intelligence tools and collaboration) and service providers (data providers, platform providers, reinsurers, loss engineers, etc.) are evolving with the digital age.

Digital underwriting landscape

To be able to deliver these value propositions and support underwriting processes, commercial carriers will have to rely on service providers as never before. They will need to connect with data providers to support their external analytics. As with other insurance technologies, underwriting technology will connect carriers with various platform providers for channels, core systems, analytics and policy platforms.

While the insurance industry has always used loss engineers, underwriting departments will link to specialized service providers to round out their offerings. A key example of this can be seen today in cyber-insurance where carriers are scrambling to assemble not just specialized claims services, but end-to-end cyber-services to bolster their offerings.

Carriers will also continue their use of BPO in underwriting to reduce costs and will look to new alliances for channels, data or services required to support their portfolios in the marketplace.

This use of different service providers will also start to change how they equip their underwriters. Core desktop solutions to handle the workflow, electronic data and rules are still relevant; but these systems will need to become more flexible as new business intelligence tools (analytics, machine learning, artificial intelligence), new data (social media, Internet of Things, big data) and new services play a role in evaluating the risk and collaboratively designing holistic risk protection solutions.

The winners, as always, will be the ones that can seamlessly deliver the full range of tools, options, advice and resources to the underwriter at the right time, right place and right format for them to use. In the new digital underwriting ecosystem, there just are a lot more of these tools and resources to coordinate.

Join us for the next part in the series, when we look how data and analysis are changing in the new digital underwriting ecosystem.

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